XRP Ledger unlocks escrow for all tokens with XLS-85

XRP Ledger’s XLS-85 upgrade enables native escrow for all trustline-based and Multi-Purpose Tokens, expanding secure, programmable settlement to stablecoins and real-world assets.

The XRP Ledger has received a significant upgrade with the activation of the XLS-85 amendment on February 12, 2026. This update extends native escrow functionality—previously limited to XRP—to all trustline-based tokens (IOUs) and Multi-Purpose Tokens (MPTs) on the network. Now, stablecoins, real-world asset tokens, and other digital assets can leverage secure, programmable, and conditional on-chain escrow directly at the protocol level. The upgrade enhances transaction types such as EscrowCreate, EscrowFinish, and EscrowCancel. However, token issuers must explicitly enable escrow for their tokens, ensuring regulatory and governance controls remain in place. This development is expected to simplify token management, support use cases like secure vesting, institutional settlements, and treasury management, and potentially boost network activity and demand for XRP. While the immediate price impact is uncertain, escrow-enabled tokens mark a major leap for the XRPL ecosystem, expanding its utility for enterprises and advanced financial products.